Outsourcing vs in-house resources

  • Abdul Manan Shaikh | General Manager
  • May 21, 2020

When starting a company setup in Dubai, you can choose between hiring full-time employees for every department of your company, or outsourcing specific activities to professional contractors. There are pros and cons to each approach and some business functions lend themselves better to outsourcing than others.

 

Pro: Time is Money

When you outsource certain operations such as marketing, customer support and/or human resource management, it allows you to focus your time on core business activities. In doing so, you stay attentive to your company’s growth when you first open your business in Dubai, whilst subsidiary tasks are dealt with by expert hands. Specialists possess the subject-matter expertise to professionalise the outsourced operations and accomplish tasks at faster speeds than you would as a non-expert. In saving your time, you save money.

 

Con: Lack of Familiarity

On the other hand, hiring contractors means that there will be some back and forth before their deliverables align with your expectations, given that they are strangers to your company’s culture and workflows. This lack of direct involvement in the company can even translate into conflicts regarding timelines and policy adherence. You may wish to avoid inconveniences of this sort during the initial period of setting up your business in Dubai.

dz-outsource

Generally speaking, business owners should outsource operations when one of these conditions arise:

1) When certain tasks are taking more time than they are worth: In order to scale your business, you should improve and streamline operations as you strive for maximum efficiency. Most of the time, that means delegating work as your business grows, instead of continuing to do it all yourself. 

2) When certain tasks are diverting your attention from higher priorities: If you find yourself occupied with minor tasks rather than higher-order demands, it’s time to get some help. Typically, when they start a company in Dubai, business owners should remain focused on activities that directly contribute to their company’s profitability, whilst all supporting activities can be outsourced. 

3) When certain tasks can be carried out faster, and therefore cheaper, by someone else: If it would be more cost-effective for a third party to handle a task, outsource it.

Another key point to note is that outsourcing work is an effective workaround to visa limitations imposed on companies set up in Dubai’s free zones. Whilst these companies are legally obligated to keep their on-hand staff lean, they may choose to enlist the services of freelancers, like the media professionals who have set up businesses in UAE free zones such as twofour54. There are also numerous outsourcing companies available for business at Outsource City Free Zone, Dubai.

Therefore, when you first start your business in a Dubai free zone, you can consider outsourcing departments that are suited to it. These include administrative work, hiring and human resource management, marketing solutions, customer care and support, and financial management.

Certain activities are best kept in-house, however. Activities requiring a high level of supervision from your end as the business owner should be handled internally, as should operations related to your company culture, and your employees’ professional development.

 

Do you have more questions about setting up your business in Dubai? Our experts at Decisive Zone have all the answers. Contact us now to book an appointment at +971 4 581 3618 or [email protected] 

 

About the author

Abdul Manan Shaikh | General Manager

Manan is bridging management and employee relations by addressing demands while developing strategies and initiatives aligned with the overall company's strategy.

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